AwardYear: 1994-1995 Edition: PostSecondary Part: APPENDICES SectionNumber: SectionTitle: Appendix C: Glossary PageNumbers: ACADEMIC YEAR -- This is a measure of the academic work to be accomplished by the student. The school defines its own academic year, but the federal regulations set minimum standards for the purpose of determining SFA awards. For instance, the academic year at a term school must be at least 30 weeks of instructional time in which a full-time student is expected to complete at least 24 semester or trimester hours, 36 quarter hours, or 900 clock hours. AWARD YEAR -- The award year begins on July 1st of one year, and extends to June 30 of the next year. Funding for the Federal Pell Grant and campus-based programs is provided on the basis of the award year -- thus, a student is paid out of funds designated for a particular award year, such as the 1994-95 award year. BASE YEAR -- For need analysis purposes, the base year is the calendar year preceding the award year. For instance, 1993 is the base year used for the 1994-95 award year. The "Free Application for Federal Student Aid" uses family income from the base year because it is more accurate and easier to verify. CAMPUS-BASED PROGRAMS -- The Federal Perkins Loan, the Federal Supplemental Educational Opportunity Grant, and the Federal Work-Study programs. These three programs are called "campus-based" because the funds are administered directly by the school's financial aid office, which awards these funds to students using federal guidelines. CENTRAL PROCESSING SYSTEM (CPS) -- The Department's processing facility for application data, currently located in Iowa. The CPS receives student information from the application processors, calculates the student's official EFC, and returns the student's information to the application processor, which prints the Student Aid Report. COST OF ATTENDANCE (ALSO KNOWN AS COST OF EDUCATION) -- The student's cost of attendance includes not only tuition and fees, but the student's living expenses while attending school. The cost of attendance is estimated by the school, within guidelines established by federal regulation. The cost of attendance is compared to the student's Expected Family Contribution to determine the student's need for aid. DEPARTMENT (OR ED) -- Abbreviation for the U.S. Department of Education. DEFAULT -- Failure to repay a loan in accordance with the terms of the promissory note. DEFAULT RATE -- A percentage calculated each year for a postsecondary school, based on the number of former students who have defaulted on a Federal Stafford Loan received at that school. EXPECTED FAMILY CONTRIBUTION (EFC) -- The amount the student's family is expected to contribute towards the cost of attendance, for the purposes of the SFA programs. The EFC is printed on the front of the Student Aid Report. FEDERAL FAMILY EDUCATION LOAN PROGRAMS -- The Federal Stafford, and Federal PLUS loan programs. Funds for these two programs are provided by private lenders, and the loans are guaranteed by the federal government. FINANCIAL NEED -- The difference between the student's cost of attendance and the expected family contribution. FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA) - - The application filled out by the student that collects household and financial information to be used to calculate the Expected Family Contribution. NEED ANALYSIS -- The process of analyzing the household and financial information on the student's financial aid application and calculating an Expected Family Contribution. OVERAWARD -- Generally, any amount of campus-based aid or a Federal Family Education Loan that exceeds the student's financial need. (The overaward concept does not apply to the Federal Pell Grant Program.) OVERPAYMENT -- Any payment of a Federal Pell Grant, Federal SEOG, or SSIG that exceeds the amount for which the student was eligible, whether the overpayment is the result of an overaward, an error in the cost of attendance or the Expected Family Contribution, or any other eligibility criterion, such as citizenship or enrollment in an eligible program. PROMISSORY NOTE -- A legal document that the borrower signs to get a loan. By signing this note, the borrower promises to repay the loan, with interest, in specified installments. The promissory note will also include any information about the grace period, deferment or cancellation provisions, and the student's rights and responsibilities with respect to that loan. RESOURCES -- Other student aid that must be taken into account to prevent an overaward in the campus-based programs, as defined in the regulations for the campus-based programs. (The term "resources" is used differently in the independent student definition, where it includes taxed and untaxed income and other forms of non- parental support, as well as student aid.) SCHOOL -- A postsecondary educational institution. In this Handbook the term "school" refers to such an institution. SIMPLIFIED NEEDS TEST -- The primary purpose of the simplified needs test is to make it easier for students from low- income households to fill out the "Free Application for Federal Student Aid." If a student's family's taxed income or earned income is $49,999 or less, and the relevant family members were non-tax filers or used a 1040A or a 1040EZ to file their taxes, the student will fill out only the first part of the application. Students who use the simplified needs test generally receive a larger award. STUDENT AID REPORT (SAR) -- An output document sent to the student by the application processor. The SAR contains the financial and other information reported by the student on the "Free Application for Federal Student Aid." That information is entered into the processing system, and the SAR is produced. The student's eligibility for aid is indicated by the EFC printed on the front of the SAR. SFA PROGRAMS -- The programs administered by the office of Student Financial Assistance Programs within the U.S. Department of Education: Federal Pell Grants, Federal Supplemental Educational Opportunity Grants, Federal Work-Study, Federal Perkins Loans, Federal Stafford Loans, Federal PLUS Loans, State Student Incentive Grants, Byrd and Douglas Scholarships. VERIFICATION -- A procedure whereby the school checks the information the student reported on the financial aid application, usually by requesting a copy of the tax returns filed by the student and, if applicable, the student's spouse and parent(s). Many schools conduct their own form of verification. In addition, schools must verify students selected through the federal central processing system, following the procedures established by regulation. The contractor will print an asterisk next to the Expected Family Contribution (on the Student Aid Report) to identify students who have been selected for verification. |